PREDICTIVE DISCOVERY LIMITED — Interim / Quarterly Report 2013

Jan 30, 2014

31[st] January 2014

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ASX Announcement

December 2013 Quarterly Report

Highlights:

EXPLORATION

Predictive Discovery Limited is a gold exploration company with strong technical capabilities focused on its advanced gold exploration projects in West Africa.

• Outstanding drill results at Bongou, Burkina Faso:

68m (52m true width) at 3.2g/t Au from 99m, including:

• 7.8m at 10.2g/t Au

55m (47m true width) at 3.2 g/t Au from 215m, including:

• 24.5m at 4.9 g/t Au

49m (41m true width) at 2.8g/t Au from 144m including:

ASX: PDI

• 6m at 7.8g/t Au

• 8m at 4.5g/t Au

Issued Capital: 301M shares

64m (58m true width) at 2.0g/t Au from 14m including:

Share Price: 1.6 cents

• 5m at 7.3g/t Au

15m (11m true width) at 3.1g/t Au from 166m including:

Market Capitalisation: $4.8M

• 4.8m at 5.3g/t Au

Cash (at 31[st] December 2013): $1.2M

• Excellent continuity, potential for strike length increase at depth

o Multiple targets including new gold mineralisation in trenches

□ Cote D’Ivoire New Projects:

• Up to 36g/t Au obtained in first round of rock chip sampling.

• Two new exploration permits granted in January, total ground now held is 1,534 km[2] .

Directors

Phillip Harman Non-Exec Chairman

□ Planned March Quarter Exploration Program:

o Bongou:

Paul Roberts Managing Director

• Diamond drilling program at Bongou, totalling 2,000m.

• Exploration along strike – geochemistry and geophysics.

• Commence metallurgical testwork.

Phil Henty c Non-Executive Director

o Reconnaissance work programs on new permits in Cote D’Ivoire.

CORPORATE

Tim Markwell Non-Executive Director

• Capital raising – placement of $1.06m and SPP to raise up to $0.5m

• $1.2M in cash at 31st December 2013 (prior to placement) and no debt.

• African Lion 3 Fund increases shareholding to 18%

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INTRODUCTION

PDI’s major country focus is Burkina Faso, West Africa where it has established a well-qualified Burkina-based exploration team and a large regional tenement package mainly in the north east of the country covering 1,605km[2] (Figure 1). The Company also holds four granted exploration permits in Cote D’Ivoire totalling 1,534km[2] (Figure 7).

The Company’s tenement holding covers approximately 100km of strike length in the Samira Hill greenstone belt in eastern Burkina Faso (the Bonsiega permit group, Figure 1). This belt hosts the 2.5 million ounce Samira Hill gold deposit across the border in Niger and contains numerous active artisanal gold mine sites along its length. The Bangaba permit covers 10km of strike of the nearby Sebba Belt, including the largest known artisanal workings in that belt. PDI owns 100% or rights to earn 95 to 100% of all its permits in Burkina Faso.

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Figure 1: Locality of PDI permits, showing location of PDI’s principal prospects in Eastern Burkina Faso. Larger yellow dots locate exploration prospects explored during the 2012-13 field season. Smaller yellow dots are additional prospects which have yielded ore grade and width gold intercepts in RC drill holes.

PDI has discovered gold mineralisation on multiple prospects in its Eastern Burkina Faso project area during the past two years (e.g. Bongou, Dave, Laterite Hill, Solna, Tambiri and Fouli), all of which may contribute to a potential future major gold mining operation. In particular, PDI’s discovery of high grade gold mineralisation at Bongou has opened up a significant new exploration opportunity for the Company, both at Bongou itself and along the additional 43km of unexplored Bongou Structure within PDI’s permits (Figure 2).

In the 2012-13 field season, PDI focused its attention on prospects which offered the best combination of grade, continuity, size potential and width. Bongou meets all these criteria. The

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Company has now tightened its focus on Bongou and the immediate surrounding area to maximise effective use of its funds.

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Figure 2: Regional geological map of the area near Bongou, showing location of Bongou itself, two target zones (red dashed line ellipses) 4km and 10km north-east of Bongou and the Dave Prospect.

PROJECTS

Burkina Faso

Bonsiega Permit Group

Bongou Prospect (PDI 100%)

The high-grade Bongou gold discovery is located in the south-western portion of the Bonsiega Project tenements in Eastern Burkina Faso (Figures 1 and 2). It underlies artisanal workings forming an irregular open pit approximately 150m long and 50m wide. Exploration by PDI has included rock chip sampling, trenching, ground geophysical surveys and completion of 14 RC holes in 2012 and 2013 which obtained very encouraging drill intersections[1] (Figures 3 to 5) including:

• BNGRC010: 48m (39.6m true width) at 4.3g/t Au from 34m, including 16m (13.2m true width) at 9.7g/t Au

1 These results were re-reported to the ASX in a release dated 2nd December 2012 (“Thick, high-grade gold intercepts at Bongou Prospect”).

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• BNGRC014 : 37m (35.5m true width) at 5.0g/t Au from 111m, including 16m ( 15.4m true width ) at 8.9g/t Au

• BNGRC001 : 20m (7.6m true width) at 4.8g/t Au from 70m

• BNGRC004 : 50m (42m true width) at 1.9g/t Au from 47m, including 8m (6.7m true width) at 9.2g/t Au.

Gold mineralisation is contained within an intensely altered and quartz veined, pyrite-bearing granite intrusion. The higher grades are located in a single steeply dipping zone located against the granite’s contact with a sheared gabbro (Figure 4). Geochemical drilling close to Bongou has also identified two additional gold anomalous areas, one of which is 300m long and up to 100m wide with a peak value of 4.8g/t Au . The mineralisation is located close to a very large structure which is probably related to the gold mineralised system. Other targets are located along this structure within PDI’s tenements (Figure 2).

November 2013 Drilling Program

PDI commenced a combined RC and diamond drilling program using a multi-purpose rig at the Bongou Prospect on 1 November, 2013. The eight-hole drilling program for 1,720m consisted mainly of reverse circulation (RC) pre-collars and diamond cored “tails”. Only one hole, BNGRC015, was drilled entirely with RC. Locations of drill holes completed to date at Bongou are shown on Figure 3.

The aims of the program were to identify extensions to the Bongou mineralisation and obtain several infill intercepts to improve understanding of the mineralisation’s continuity and grade variability. Samples were analysed at the SGS laboratory in Ouagadougou, Burkina Faso.

Assaying of the first five holes resulted in the following drill intercepts, reported on 2[nd] December 2013 (“Thick, high-grade gold intercepts at Bongou Prospect”):

• BNGRC015: 64m (57.6m true width) at 2.0g/t Au from 14m including:

• 5m (4.5m true width) at 7.3g/t Au from 14m

• BNGRD001: 48.7m (40.9m true width) at 2.8g/t Au from 144.3m including:

• 5.9m (5.0m true width) at 7.8g/t Au from 144.3m

• 7.9m (6.6m true width) at 4.5g/t Au from 169.1m

• BNGRD002: 3.3m (approximately 1.6m true width) at 1.44g/t Au from 40m

• BNGRD003: 55.0m (46.8m true width) at 3.2 g/t Au from 215m, including:

• 24.5m (20.8m true width) at 4.9 g/t Au

• BNGRD004R: 15m (11.4m true width) at 3.1g/t Au from 166m including:

• 4.8m at 5.3g/t Au

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Results from three other holes were reported on 16 December 2013 (“68m at 3.2g/t Au incl. 8m at 10g/t Au at Bongou”), including:

• BNGRD005: 68m (52m true width) at 3.2g/t Au from 99m, including:

• 7.8m (6m true width) at 10.2g/t Au

• BNGRD006: 3m (2.8m true width) at 1.4g/t Au

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Figure 3: Drill hole locality plan, Bongou Prospect. Gold intercepts are all shown as estimated true widths. “Total” intercepts were calculated across the width of gold mineralised altered granite, irrespective of the width of internal waste zones at a cut-off grade of 0.5g/t Au. Data for this diagram were provided in PDI’s ASX releases dated 2[nd] December, 2013 (“Thick, high-grade gold intercepts at Bongou Prospect”) and 16[th] December, 2013 (“68m at 3.2g/t Au including 8m at 10g/t Au at Bongou”). Drill results from the second of those two releases are highlighted on this image.

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Figure 4: Cross Section through drill holes BNGRC010, BNGRD001, BNGRD003 and BNGRD005. No vertical exaggeration. Only down-hole widths are shown on this cross-section; estimated true widths are provided in Figures 3 and 5 and Table 1. Data for this diagram were provided in PDI’s ASX releases dated 2[nd] December, 2013 (“Thick, high-grade gold intercepts at Bongou Prospect”) and 16[th] December, 2013 (“68m at 3.2g/t Au including 8m at 10g/t Au at Bongou”). Drill results for BNGRD005 from the second of those two releases are highlighted on this image.

Interpretation of these drill results along with detailed new geological mapping of the artisanal workings has indicated that:

• The bulk of the known mineralisation exists within a single, steeply north-dipping, strongly altered granite body containing quartz-carbonate veining, minor disseminated pyrite (iron sulphide) and minor sericite and magnetite. High gold grades appear to be associated with the presence of coarse crystalline pyrite.

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Figure 5: Long Section through the mineralised body oriented at 065 degrees, showing true width drill intercepts of both the total gold mineralised body at a 0.5g/t Au cut-off and true widths of the higher grade hanging wall mineralisation calculated at a cut-off grade of 3g/t Au. Data for these results are provided in Table 1 and PDI’s ASX release of 2[nd] December 2013 (“Thick, high-grade gold intercepts at Bongou Prospect”). Drill results from the second of those two releases are highlighted on this image.

• Higher gold grades are consistently located against the northern “hanging wall” boundary of the altered granite with sheared gabbro (Figure 4).

• The western and eastern limits of the main mineralised body are affected by steep dipping faults which are not yet fully understood (Figure 5), however:

• at least two faults on the western side of the mineralisation cut off part of the high-grade hanging wall position, leaving a lower grade remnant in outcrop and some of the western holes. One of those faults is shown on Figure 5. The displaced high-grade mineralisation may be located at depth to the west and will be a target for future drilling.

• An inferred fault at the eastern end displaces the mineralised granite to the north and apparently downwards (Figure 5). The BNGRD004R intercept lies on the eastern side of that inferred fault. Both the BNGRD002 and BNGRC001 mineralised intercepts appears to

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terminate against the same structure. The presence of gold mineralisation in pyrite mineralised and altered granite veins in drill hole BNGRD006 40m to the east of the BNGRD004R intercept suggests that the same mineralised granite body plunges shallowly to the east. It is also possible that the latter two intercepts represents the upper part of the altered granite intrusive which may therefore thicken at depth.

Trenching North-West of Bongou

PDI completed 110m of trenching in the December Quarter. This was all carried out in a single trench through an area of thin cover from which earlier power auger drilling had recorded values of up to 4.8g/t Au (see ASX release titled “Gold Target Expanded at Bongou Prospect” dated 26[th] July 2013).

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Figure 6: Location of the trench dug during the December Quarter on a map of power auger results released to the ASX on 26[th] July 2013 (“Gold Target Expanded at Bongou Prospect”).

Channel sampling of altered granite in this trench included a 12.5m long section averaging 0.5g/t Au . The samples were taken over variable intervals, with a peak value of 15g/t Au over a 10cm thick quartz vein. The trench remained in altered granite at its southern end and will therefore be extended southwards during the March Quarter. There are no historic or current artisanal workings over this location.

This is a significant result because it is a new discovery of Bongou-style mineralisation which is physically separated from but close to the Bongou deposit. Also, importantly, the average grade of the altered granite may be significantly higher at shallow depths below the trench. For

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example, in the Bongou artisanal workings, channel sampling of altered granite only averaged 1g/t Au despite the fact that much higher grades are present at shallow depths below there.

Planned Exploration Activities March 2014 Quarter – Burkina Faso

Exploration planned in Burkina Faso during the March Quarter will include the following:

• A diamond drilling program with RC pre-collars, totalling approximately 2,000m, at the Bongou Prospect commencing the first half of February 2014. This program is planned to test for extensions to the Bongou gold mineralisation at depth and along strike, principally to the east.

• Ongoing trenching along strike from the new mineralised body identified in the December Quarter, north-west of Bongou, along with trenching over other gold anomalies revealed by power auger drilling in 2013.

• A geophysical (gravity) survey along strike from the Bongou artisanal workings with the aim of finding more altered granite concealed beneath thin soil or alluvial cover there.

• Commencement of a metallurgical testwork program on diamond drill core from the Bongou Prospect, focusing on ore hardness and identifying ways of reducing future grinding costs while maximising gold recoveries[2] .

Initial assay results from at least some of the diamond drilling are expected in the first half of March 2014.

Cote D’Ivoire

Background

Detailed work on Cote D’Ivoire data sets has led PDI to identify a portfolio of high priority prospects and targets in Cote D’Ivoire. As a result, the Company has secured four exploration permits in the country, covering a total area of 1,534 km[2] . Four of those permits, Kokumbo, Ferkessedougou, Boundiali and Kounahiri have now been granted (Figure 7). Of these, two permits, Boundiali and Kounahiri were granted to PDI in January, 2014 .

2 Preliminary cyanidation testwork on an RC drill composite sample composed of primary mineralisation using a standard 75 micron grind reported a 94% gold recovery (ASX release entitled “Excellent Gold Recoveries from Metallurgical Testwork” dated 14[th] May 2013).

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Figure 7: Locality map of PDI’s interests in Cote D’Ivoire. Notes: (1) Granted exploration permits are in brown and the permit applications are in blue, (2) Green areas signify volcanic and sedimentary rocks and pink areas are mainly granite, (3) the Komboro permit application was the subject of an earlier agreement however PDI and the permit owner are discussing revised JV terms.

Kokumbo Permit (PDI earning 90%)

Introduction

The permit is held by a Cote D’Ivoire company, Ivoir Negoce, and covers an area of 400 km[2] in southern Cote D’Ivoire (Figure 5). Located 30km south of the country’s administrative capital, Yamoussoukro, and about 40km north of Newcrest’s operating Bonikro Gold Mine, it is serviced by a bitumen road and a power line. The area is covered by forested rolling hills and extensive lateritic cover.

Kokumbo has a long history of artisanal mining dating back to before colonial times in the late 19[th] century. Commercial scale mining was carried out by various parties in from early in the twentieth century until 1953. Since then all mining in the area has been by artisanal miners.

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The town of Kokumbo, near the centre of the permit, services a substantial population of artisanal miners who are working on numerous prospects throughout the area. These prospects consist of both quartz vein mine operations and processing of gold mineralised laterite.

Kokumbo Reconnaissance Program

PDI geologists undertook several weeks of geological mapping and rock chip sampling at active artisanal mine sites during the Quarter. 18 rock chip samples were collected from various active artisanal mine sites around the principal historic mining centre on Kokumbo Hill and analysed by fire assay at the SGS laboratory in Ouagadougou (see Table 2 for results). Of the latter, 8 samples contained more 0.5g/t Au, with the peak values being 36.1g/t Au and 15.7g/t Au. Both of these samples contained gossanous material (probably weathered sulphides), the higher grade sample also containing quartz.

A large quantity of historic data from Kokumbo was obtained in Abidjan and work began on compiling it.

Ferkessedougou Permit (PDI 100%)

The Ferkessedougou Permit was among the highest priority areas highlighted by PDI’s Predictore[TM] analysis of the country and is reported to contain a series of gold occurrences. It covers an area of 387 km[2] in northern Cote D’Ivoire.

A reconnaissance visit to the permit was carried out in early October in preparation for a geochemical survey which is planned for the March Quarter.

Boundiali Permit (PDI 100%)

The Boundiali exploration permit is located within the same greenstone belt as the Syama, Sissingue and Tongon gold deposits. It covers an area of 400 km[2] in north-eastern Cote D’Ivoire and contains a number of recorded gold artisanal mine occurrences.

The permit lies directly along strike from Syama and Sissingue. Syama is a large gold mine in Mali owned by Resolute Mining Limited (ASX: RSG) and Sissingue is an undeveloped gold deposit in northern Cote D’Ivoire owned by Perseus Mining Limited (ASX: PRU).

Boundiali’s location in a structurally interesting position in an extremely well mineralised greenstone belt with known gold occurrences indicates strong prospectivity for a significant gold discovery.

The first phase of field work is planned for the June Quarter of 2014 and will consist of geological mapping and BLEG gold stream sediment geochemical sampling. Compilation of historic exploration data will commence beforehand.

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Figure 8: Geological map of Boundiali Exploration Permit

Kounahiri Permit (PDI 100%)

The Kounahiri Permit lies in a regional structural position selected from a country-scale geological analysis using the Predictore[TM] methodology. It covers an area of 347 km[2] . The first phase of field work is planned for the June Quarter of 2014 and will consist of geological mapping and BLEG gold stream sediment geochemical sampling.

Komboro Permit Application

An agreement was negotiated between PDI and a local Ivoirian company on a 170km[2] permit application over this area in 2012. Since then, PDI and the permit’s owner have been discussing a variation of the terms of that agreement which would eliminate all cash payments but no agreement has been reached. At this stage, the likelihood of achieving an agreement on acceptable terms to both parties is considered low.

Planned Exploration Activities March 2014 Quarter – Cote D’Ivoire

Field work in the March Quarter will be on the Kokumbo and Ferkessedougou permits, and will consist of:

• Geological mapping, track cutting and ground magnetic surveys at Kokumbo

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• A BLEG (“bulk leach extractable gold”) stream sediment geochemical survey over Ferkessedougou.

In addition, work will continue on data compilation for the Kokumbo permit and commence on obtaining past exploration data from the new Boundiali and Kounahiri permits.

PDI’s exploration in Cote D’Ivoire during the current field season is being conducted on a campaign basis. Work is being carried out in breaks in the Bongou work program, mainly using current PDI staff. Costs are being kept under tight control to enable the Company to focus its exploration budget on advancing Bongou as quickly as possible.

Australia

Victoria - Gold (PDI 100%)

No field programs were carried out in Victoria during the September Quarter.

CORPORATE

At 31[st] December 2013, PDI held cash and term deposits of $1.2 million and no debt.

Placement

PDI received written commitments for a $1.065 million share placement to sophisticated investors priced at 1.6 cents in late January 2014. The price was at a 10% discount to the volume weighted average price of shares for the 5 trading days prior to 28[th] January 2014. In addition, the Company announced a Share Purchase Plan ( SPP ) when PDI resumed trading on Wednesday 29[th] January 2014.

The Directors committed $85,000 towards the January placement; approval of their contribution will be sought at an EGM in March 2014.

This placement was supported by many of PDI’s largest shareholders. The African Lion 3 Fund ( AFL3) , in particular, contributed $500,000 towards the placement. On completion of this placement and before completion of the planned SPP and EGM, AFL3 will hold over 18% of the Company’s shares .

General Meetings

Extraordinary General Meeting

An EGM was held on 18 October 2013 at which shareholders considered the following resolutions:

1. Ratification of prior issue of 35,500,000 shares

2. Approval for issue of 22,389,474 shares

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1. Issue of shares to Phillip Harman

2. Issue of shares to Phil Henty

3. Issue of shares to Paul Roberts

4. Issue of shares to Dr Thomas Whiting.

All resolutions were passed at the meeting.

2013 Annual General Meeting

PDI’s 2013 Annual General Meeting was held in Melbourne on 18 November 2013. Shareholders at the meeting considered the following resolutions:

1. Adoption of remuneration report

2. Re-election of Director – Phil Harman

3. Re-election of Director – Phil Henty

4. Re-election of Director – Tim Markwell

5. Approval of additional 10% placement capacity.

All resolutions were passed at the meeting.

TABLE 1 – DRILL RESULTS

	Drill hole collar details	Drill hole collar details	Drill hole collar details	Drill hole collar details	Drill hole collar details		0.5 g/t cut-off	0.5 g/t cut-off	0.5 g/t cut-off	3.0 g/t cut-off	3.0 g/t cut-off	3.0 g/t cut-off	Comments
Hole Number	UTM East	UTM North	RL	UTM Azimu th (°)	Hole dip (°)	Hole depth (m)	Fro m (m)	Interval (true width in brackets)	Au g/t	From (m)	Interval (true width in brackets)	Au g/t
BNGRC015	207509	1422204	275	154	-45	103	14	64 (57.6)	2.03	14	5 (4.5)	7.32	All RC samples
BNGRC015	207509	1422204	275	154	-45	103				57	2 (1.8)	4.77
BNGRC015	207509	1422204	275	154	-45	103				30	4 (3.6)	3.92
BNGRC015	207509	1422204	275	154	-45	103				24	2 (1.8)	3.45
BNGRC015	207509	1422204	275	154	-45	103				62	5 (4.5)	3.28
BNGRC015	207509	1422204	275	154	-45	103	85	2 (1.8)	1.63
BNGRD001	207439	1422261	281	154	-60	213.5	127	6 (5)	0.79				RC samples from 127- 130m, DD samples 130-133m.
BNGRD001	207439	1422261	281	154	-60	213.5	144.3	5.9 (5.0)	7.82	144.3	5.9 (5.0)	7.82	"Total" intercept: 2.80
BNGRD001	207439	1422261	281	154	-60	213.5	156.7	36.3 (30.5)	2.48	169.1	7.9 (6.6)	4.49	g/t Au average from
													144.3 to 193.0m
BNGRD001	207439	1422261	281	154	-60	213.5				158.6	2.2 (1.9)	3.87	(48.7m down-hole or
BNGRD001	207439	1422261	281	154	-60	213.5				185	3.4 (2.8)	3.17	40.9m true width) . All
													DD samples.
BNGRD002	207508	1422206	275	107	-50	100	24.3	1.4 (est. true width 0.7m)	2.22				All DD samples
BNGRD002	207508	1422206	275	107	-50	100	29	3.8 (est. true width 1.9m)	0.63
BNGRD002	207508	1422206	275	107	-50	100	40	3.3 (est. true width 1.6m)	1.44
BNGRD003	207405	1422338	286	152	-53	305	215	55.0 (46.8)	3.20	227.6	24.5 (20.8)	4.92	All DD samples
BNGRD003	207405	1422338	286	152	-53	305				261	4 (3.4)	6.34

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BNGRD004 R	207485	1422347	277	160	-52	239	163	15.0 (11.4)	3.15	165	4.8 (3.6)	5.29	BNGRD004 not assayed - hole abandoned because of excessive deviation. RC samples to 166, DD samples below that depth.
BNGRD005	207434	1422243	280	153	-51	188.2
							99	14(10.8)	2.52
BNGRD005	207434	1422243	280	153	-51	188.2				104.6	2.3(1.8)	4.48
BNGRD005	207434	1422243	280	153	-51	188.2				108.5	3.5(2.7)	3.88
													"Total" intercept was
BNGRD005	207434	1422243	280	153	-51	188.2				111	1(0.8)	8.39	68m (52.4m true
													~~w~~idth) at 3.18g/t Au
BNGRD005	207434	1422243	280	153	-51	188.2	118.6
								48.4(37.3)	3.72				from 99m. RC samples
BNGRD005	207434	1422243	280	153	-51	188.2				120.2			from 99 to 103m, the
											7.8(6.0)	10.24
													~~r~~emaining assays are
BNGRD005	207434	1422243	280	153	-51	188.2				135	2(1.5)	5.97
													all from diamond drill
BNGRD005	207434	1422243	280	153	-51	188.2				140			core.
											4(3.1)	6.89
BNGRD005	207434	1422243	280	153	-51	188.2				149
											7(5.4)	3.90
BNGRD005	207434	1422243	280	153	-51	188.2				166	1(0.8)	8.64
BNGRD006	207502	1422374	276	154	-60	209.2	172	3(2.8)	2.05				Diamond drill core
BNGRD007	207537	1422392	276	154	-60	230.3							No significant result. Best value was 0.7m at 0.88g/t Au from 192.7m

Section 1: Sampling Techniques and Data

Section 1: Sampling Techniques and Data	Section 1: Sampling Techniques and Data	Section 1: Sampling Techniques and Data
Criteria	JORC Code Explanation	Commentary
Sampling Technique	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	All of the sampling described in this report refers to either reverse circulation (RC) drill samples or diamond drill core samples. The RC drilling was used to obtain 1 m samples from which 2 kg was pulverised to produce a 50 g charge for fire assay. The RC samples were reduced to a 2kg sample by riffle splitting on site. The diamond core samples were cut in half longitudinally using a diamond saw. Measures were taken to avoid wet RC drilling and the drilling method was changed from RC to diamond coring at or before the point when the air pressure from the RC rig was incapable of keeping the samples dry. The drill samples are judged to be representative of the rock being drilled because representative sub-sampling of both the RC and diamond core samples was achieved.
Drilling	Drill type (eg core, reverse circulation, open- hole hammer,	RC drilling was carried out using a 4.5 inch or 5.5 inch face sampling hammer. RCprecollars varied from 20 to 163m longand the diamond drill tails were upto

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	rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method,etc).	170m long. The diamond core size was NQ apart from up to 3m of HQ core which was drilled immediately after the changeover from RC to diamond coring. The diamond core was oriented using a Reflex Act II RD core orientation device.
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recovery was estimated for all samples. RC recoveries were estimated by measuring the volume of material in each bag relative to the known volume of the drill hole. Core samples were measured from core block to core block once core had been placed in the core trays. Sample recovery was maximised in the RC drilling by use of a face sampling hammer and by converting to diamond coring when it was no longer possible to drill dry samples. A petrological study of the mineralisation and the absence of any high-grade gold value above 32.9g/t Au throughout the whole database both point to the gold grainsize typically being below 50 microns which would also mitigate against sampling not being representative.
Logging	Whether core and chip samples have been geologically and geotechnical logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean/Trench, channel, etc) photography. The total length and percentage of the relevant intersections logged.	Detailed geological logging has been carried out on all drill samples, recording lithology, weathering, structure, (including orientation where the core is oriented), veining and/or mineralisation, grainsize and colour. Logging of sulphide mineralization and veining is quantitative. RQDs are recorded routinely. Photography of the cut core is not yet complete but will be carried out in the next month. No judgement has yet been made by independent qualified consultants on whether the geological and geotechnical logging has been sufficient to support Mineral Resource estimation, mining and metallurgical studies.
Sub-Sampling Technique and Sample Preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the materialbeing sampled.	Core samples were cut in half longitudinally with a diamond core saw with one half submitted for assay and the remaining half retained in core trays which are stored at PDI's field camp in Gayeri. Core sampling intervals were defined by variations in lithology and mineralogy but are typically 0.5-1.0m. An on-site riffle splitter was employed to produce a 2kg assay sample for submission to SGS. Either one or two reference riffle-split 2kg samples are retained from the RC samples for future re-assay or metallurgical testwork. The sampling (and analytical) methods were appropriate for the style of mineralisation, especially as no visible gold has been observed and previous petrological studies indicate that the typical gold grain size is less than 50 microns.

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Quality of Assay Data and Laboratory Tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	All samples were assayed for gold by 50g fire assay at the SGS laboratory in Ouagadougou, Burkina Faso. The technique is considered a total analysis. No geophysical tools, spectrometers or handheld XRF instruments have yet been employed although XRF scanning of some of the core using a hand held XRF instrument is planned. Unlabelled standards were submitted with all assay batches, generally at the rate of one standard every 15thsample, whether from RC or diamond drilling. Blanks were also submitted with RC sample batches. Where any problems with bias or accuracy, especially outside of a +/- 10% envelope is observed, samples are re- assayed. External laboratory checks are planned but have not yet been carried out.
Verification of Sampling and Assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data	No holes have yet been twinned. Field data collection is undertaken by the company’s Burkina Faso-based geologists. All results are checked by Mr Paul Roberts, the company’s Managing Director.
Location of Data points	Accuracy and quality of surveys used tolocate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control	Collar positions were located using a hand held GPS with a location error of +/- 3m. Collar RLs were established by interpolation between surveyed points established for an earlier geophysical survey with an estimated elevation error of less than 2m. Collar coordinates listed in the table are for Universal Transverse Mercator (UTM), Datum WGS 84, Zone 31 - Northern Hemisphere.
Data Spacing and Distribution	Data spacing for reporting of Exploration Results Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has beenapplied	The drill intercepts are irregularly spaced but approximately 40 x 40m. No judgement has yet been made by an independent qualified consultant on whether the drill density is sufficient to calculate a Mineral Resource. Sample compositing was applied only to samples thought to be un- mineralised. Sample composites were mostly either 4m or 8m.
Orientation of Data in Relation to Geological Structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	All drill holes reported here were drilled approximately at right angles to the strike of the target mineralization. The mineralisation appears to be a disseminated type with no evidence yet identified for ore distribution being in any orientation other than parallel to strike of the mineralised body.
Sample Security	The measures taken to ensure sample security	The large RC sample bags are stored at a sample farm on PDI’s exploration permits. These are guarded at all times by local individuals hired for this purpose. 2kg reference samples are stored at the company’s field camp in the town of Gayeri, which is guarded 24 hours per day. Pulp samples are retained at company premises in Ouagadougou which are also

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		guarded 24 hours per day.
	Section 2 Reporting of Exploration Results
Mineral Tenement and Land Tenure Status	Type, reference name/number, location and ownership including agreements or material issues with third partiessuch asjoint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Bongou Prospect lies entirely within the Madyabari Permit (Arrêté N°2011 /11/352/MCE/SG/DGMGC) which covers an area of 172 sq km. There are no overriding reserves or national parks over this permit. In a future mining operation, the Government of Burkina Faso is entitled to a 10% share of any mine along with a 3-5% ad valorem royalty, the percentage of which is determined by the gold price prevailing at the time. The company believes that (a) the permit is securely held as it has complied with all the necessary government requirements and (b) the permit can be replaced in due course by a mining licence as long as a feasibility study shows that a future mine would be viable and that company completes meets the Government’s legal requirements, which it fully intends to do. The Madyabari permit was initially acquired, along with three other nearby permits (Sirba, Fouli and Tantiabongou), by Birrimian Pty Ltd (Birrimian), which is a British Virgin Islands-registered company now 100% owned by PDI. The original owners of Birrimian subsequently entered into an agreement with Eldore Mining Corporation Limited (Eldore) through which Eldore could acquire the Birrimian permits through a series of payments and a commitment to issue US$2 million worth of Eldore stock on completion of a Bankable Feasibility Study on one or more ore deposits within the Birrimian permits. PDI initially acquired an interest in Madyabari along with the three other Birrimian permits via a joint venture with Eldore which commenced in January 2010. In 2012, Eldore changed its name to Stratos Resources Limited (ASX: SAT) after which PDI bought out SAT’s residual interest (in late 2012). In acquiring Birrimian, PDI also inherited the one unfulfilled commitment in the original Eldore agreement with the original Birrimian shareholders. This commitment has now been agreed to mean that PDI will issue US$2 million worth of PDI shares after PDI accepts an offer of finance for development of a mine on the Birrimian permits at its sole discretion) following completionofaBankableFeasibility Study.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	Past exploration over the Bongou prospect consisted of wide spaced soil sampling and an aeromagnetic survey. Previous explorers did not recognise the significance of the Bongou mineralisation, which appears to have been discovered by artisanal miners.
Geology	Deposit type, geological setting and style of mineralisation.	Mineralisation consists of an intensely silicified and quartz veined granite body which lies sandwiched between a sheared gabbro on the mineralisation’s northern margin and a basalt body (partly sheared) on its southern margin. The gabbro and basalt contacts are approximately parallel to one another. Pyrite is disseminated throughout the mineralisation with higher gold grades apparently associated with coarse grained pyrite. The quartz veins contain some carbonate and the mineralisation contains minor magnetite and some sericite in fractures. Mineralisation appears to be terminated at surface at both ends by steep dipping faults which may to down throw the mineralisation so that the strike length at depth may be significantly longer than the strike length in the near surface. The mineralised body lies within a large structure which is approximately 43km long within three contiguous permits owned 100% by the company (Madyabari, Bassieri and Tamfoagou). The mineralisation is interpreted as a variant of the orogenic gold mineralisation style, which is known throughout theBirimian Belt of WestAfrica.
Drill Hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interceptiondepth	Intercepts that form the basis of this announcement are tabulated in Table 1 within the body of the announcement and incorporate Hole Number, Easting, Northing, Dip, Azimuth, Depth and Assay data for mineralised intervals. An appropriate locality map also accompanies this announcement.

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	• hole length • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why thisis the case.
Data Aggregation Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	Over 95% of the gold mineralised material (with grades exceeding 0.5g/t Au) was sampled in intervals of one meter or less. No top cuts have been applied to exploration results as the maximum value in the entire assay database is 32.9g/t Au and only 4 samples contain more than 20g/t Au. For the 0.5g/t Au cut-off calculations, up to 4m (down-hole) of internal waste is included. For the 3g/t Au cut-off calculations, up to 2m (down-hole) of internal waste is included. For the “total intercept” average grade recorded for hole BNGRD005 in the Comments column, the average grade is calculated with a cut- off grade of 0.5 g/t Au and up to 6.5m of internal waste (down-hole). Mineralised intervals are reported on a weighted average basis.
Relationship Between Mineralisation Widths and Intercept Lengths	These relationships are particularly important in the reporting of Exploration Results If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width notknown’).	True widths have been estimated for all intercepts based on the assumption that the gold mineralisation is oriented parallel to the hanging wall and foot wall contacts.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	An appropriate plan and cross section has been included in the text of this document.
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reportingof Exploration Results.	All intercepts containing average gold grades exceeding 2g-m (e.g. 1 g/t Au over a down-hole width of 2m) are reported. All of the holes for which assays were available for this ASX release contained at least some intervals which exceeded this limit. The gabbro and basalt intersected by the reported holes commonly contain less than 0.01g/t Au.
Other Substantive Exploration Data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Preliminary metallurgical test work has been completed on one composite sample of RC chips and reported previously (ASX release entitled “Excellent Gold Recoveries from Metallurgical Test Work” on 14thMay 2013); a gold recovery of 94% was recovered by CIL testwork using a standard 75 micron grind. Additional metallurgical testwork is planned in 2014.
Further Work	The nature and scale ofplanned	Further drilling is planned to test for down-dip and along strike extensions.

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further work (eg tests for lateral The next phase of drilling will consist mainly of step-out holes at a spacing of extensions or large scale step out 40-80m x 40-80m. The detailed drill program has not yet been designed. drilling. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

TABLE 2 – TRENCH AND ROCK CHIP SAMPLING RESULTS

Trench/sample no.	UTM (WGS84) Zone	UTM East	UTM North	Elevati on	UTM Azimuth (°)	Interval length (where relevant)	Au g/t	Comments
BNGTr04	31N	206908	1422473	275	350	12.5m	0.49	From 36-48.5m from trench’s SE end. Mineralisation consists of medium grained weathered, altered (silica-sericite-albite?) granite containing minor disseminated pyrite
PDC000001	30N	250144	725102	343	n/a	n/a		Flat quartz vein in orpailleur shaft(2m),medium grey quartz, strongly deformed, moderate gossan and few boxworks, thickness of 25cm; Bandama2 site
							36.1
PDC000002	30N	250182	725080	336	n/a	n/a	0.12	Flat quartz veinlet on mafic schist; medium grey quartz, deformed, moderate gossan, thickness of 5cm; Bandama2 site
PDC000003	30N	250162	725066	339	n/a	n/a	0.18	Flat quartz vein at 1,5m depth in orpailleur shaft, light to medium grey quartz, weakly deformed, weak gossan, thickness of 20cm; Bandama2 site
PDC000004	30N	250171	725045	331	n/a	n/a	0.25	Milky quartz from schist; few gossan and oxidised pyrite ,thickness of 2cm; N160°; Bandama2 site
PDC000005	30N	250159	724837	329	n/a	n/a	0.57	Quartz vein on trench, medium grey, moderately deformed, weak gossan,N185°
PDC000006	30N	250331	724747	274	n/a	n/a	1.14	Flat quartz vein on old pit, milky quartz, very weak gossan; Amani site (3rd flat vein at the bottom?)
PDC000007	30N	250333	724745	264	n/a	n/a	0.56	Medium grey quartz from schist, fractured, moderate gossan, cross section, thickness of 25cm; N320°
PDC000008	30N	250448	722771	278	n/a	n/a		Medium grey, moderate gossan and oxidised pyrites, from orpaillage shaft at 33m depth; Blongenou site
							15.7

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PDC000009	30N	30N	251321	722807	214	n/a	n/a	n/a	0.02	Medium grey quartz, moderately deformed, mod gossan, mixed to few rock(MSD),few oxidised pyrites, thickness of 2cm; N320°
PDC000010	30N		251534	722786	219	n/a		n/a	<0.01	Light to medium grey quartz from sedimentary rock, soft quartz, fractured, weak gossan, thickness of 2cm; N345°
PDC000011	30N		249913	725134	217	n/a		n/a	0.18	Medium grey quartz from orpaillage shaft at 23m depth, few gossan, N60°; Bandama1 site
PDC000012	30N		254180	727110	312	n/a		n/a	0.13	Light to medium grey quartz, banded (light and grey bands), moderately deformed, moderate gossan,HM,LM,N45°,Sereme site (in tunnel with approximate coordinates)
PDC000013	30N		254414	726069	Unkno wn	n/a		n/a	0.35	Medium grey quartz, weakly deformed, weak gossan, HM, few MnO,N130°; Kplessou site
PDC000014	30N		254433	726085	323	n/a		n/a	0.05	Milky to grey quartz, moderately deformed, patchy gossan, 1point of VG, N360°; Kplessou site (in tunnel with approximate coordinates)
PDC000016	30N		254433	726085	320	n/a		n/a	0.67	Light to medium grey quartz (fold flank?), moderately deformed, moderate gossan, few MnO, N240°; Kplessou site (in tunnel with approximate coordinates)
PDC000017	30N		254433	726085	320	n/a		n/a	0.65	Light to medium grey quartz (folded), moderately deformed, moderate gossan, minor MnO, sericite; Kplessou site(in tunnel with approximate coordinates)
PDC000018	30N		254433	726085	320	n/a		n/a	0.15	Medium grey quartz, moderately deformed, moderate gossan, HM, LM, weak MnO, N290°; Kplessou site(in tunnel with approximate coordinates)
PDC000019	30N		249807	724529	320	n/a		n/a	0.98	Flat vein from orpailleur shaft, medium grey, weakly deformed, moderate gossan, few boxworks; Texas site
			Section 1:		Sampling			Techniques		and Data
Criteria			JORC Code Explanation					Commentary
Sampling Technique		Nature and quality of sampling (eg cut channels, random chips, or					Trenches were sampled by channel sampling close to the base of the trench. Interval were determined byvariations in thegeologybut aregenerally

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	specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	between 0.1 and 2m. Rock chip samples were either collected directly by the geologist aiming for a representative sample over a mineralised width, or when obtained from artisanal workings at depth below several metres, they were collected by artisanal miners and the representativeness of the samples and the width that was sampled is not well known, however the width would have been typically 1m or less because of the narrowness of the openings. Samples of 1-2kg in weight were submitted to the laboratory for drying, crushing, splitting and pulverisation.
Drilling	Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method,etc).	Not relevant
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Not relevant
Logging	Whether core and chip samples have been geologically and geotechnical logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean/Trench, channel, etc) photography. The total length and percentage of the relevant intersections logged.	The mineralogy of the rock samples were described but not to a level which would support a Mineral Resource Estimation.
Sub-Sampling Technique and Sample Preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. Forallsample types, thenature,	Not relevant

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	quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the materialbeing sampled.
Quality of Assay Data and Laboratory Tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	All samples were assayed for gold by 50g fire assay at the SGS laboratory in Ouagadougou, Burkina Faso. The technique is considered a total analysis. No geophysical tools, spectrometers or handheld XRF instruments have yet been employed in these areas. Unlabelled standards were submitted with all assay batches, at the rate of one standard every 20thsample.
Verification of Sampling and Assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data	Not relevant.
Location of Data points	Accuracy and quality of surveys used tolocate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control	Locations were determined using a hand-held GPS Collar coordinates listed in the table are for Universal Transverse Mercator (UTM), Datum WGS 84, Zone 31 - Northern Hemisphere.
Data Spacing and Distribution	Data spacing for reporting of Exploration Results Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has beenapplied	Trench and rock samples are irregularly spaced and insufficient for establishing geological continuity.
Orientation of Data in Relation to Geological Structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is	The trench was cut at right angles to the regional strike. Where practical, the rock samples were taken across strike of the veins or formations that were being tested.

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	known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample Security	The measures taken to ensure sample security	Reject and pulp samples are stored at PDI’s sample store in Ouagadougou, Burkina Faso.
	Section 2 Reporting of Exploration Results
Mineral Tenement and Land Tenure Status	Type, reference name/number, location and ownership including agreements or material issues with third partiessuch asjoint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Bongou trench samples lies within the Madyabari Permit (Arrêté N°2011 /11/352/MCE/SG/DGMGC) which covers an area of 172 sq km. There are no overriding reserves or national parks over this permit. In a future mining operation, the Government of Burkina Faso is entitled to a 10% share of any mine along with a 3-5% ad valorem royalty, the percentage of which is determined by the gold price prevailing at the time. The company believes that (a) the permit is securely held as it has complied with all the necessary government requirements and (b) the permit can be replaced in due course by a mining licence as long as a feasibility study shows that a future mine would be viable and that company completes meets the Government’s legal requirements, which it fully intends to do. The Madyabari permit is owned by Birrimian Pty Ltd (Birrimian), which is a British Virgin Islands-registered company which is 100% owned by PDI. The original owners of Birrimian subsequently entered into an agreement with Eldore Mining Corporation Limited (Eldore) through which Eldore could acquire the Birrimian permits through a series of payments and a commitment to issue US$2 million worth of Eldore stock on completion of a Bankable Feasibility Study on one or more ore deposits within the Birrimian permits. PDI initially acquired an interest in Madyabari along with the three other Birrimian permits via a joint venture with Eldore which commenced in January 2010. In 2012, Eldore changed its name to Stratos Resources Limited (ASX: SAT) after which PDI bought out SAT’s residual interest (in late 2012). In acquiring Birrimian, PDI also inherited the one unfulfilled commitment in the original Eldore agreement with the original Birrimian shareholders. This commitment has now been agreed to mean that PDI will issue US$2 million worth of PDI shares after PDI accepts an offer of finance for development of a mine on the Birrimian permits at its sole discretion) following completion of a Bankable Feasibility Study. The Kokumbo exploration permit is owned by Ivoir Negoce, an Ivoirian company. PDI has entered into a Joint Venture with Ivoir Negoce by which it may acquire up to 90% of the permit by spending $2 million over up to 4 years and making staged payments over 3 years totalling $400,000 in cash and shares. The Ivoirian Government is entitled to take a 10% equity in a mine that is developed on the Kokumbo permit. There is a forest reserve covering a small part of the Kokumbo permit outside of the principal areas of interest.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	Past exploration over the Bongou prospect consisted of wide spaced soil sampling and an aeromagnetic survey. Previous explorers did not recognise the significance of the Bongou mineralisation, which appears to have been discovered by artisanal miners. Past exploration on Kokumbo has included geological mapping, soil sampling, trenching, pitting,RC and diamond drilling and a groundEMsurvey.
Geology	Deposit type, geological setting and style of mineralisation.	Mineralisation in the trench described here consists of a weathered and apparently altered (silica/albite?) and quartz veined granite . The mineralisation at Kokumbo appears to consist of quartz veins +/- weathered sulphidesin mafichostrocks.
Drill Hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar	Not relevant

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	• elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why thisis the case.
Data Aggregation Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	The mineralised interval in the trench near Bongou is reported on a weighted average basis. No data aggregation was performed on the Kokumbo rock chip sample data.
Relationship Between Mineralisation Widths and Intercept Lengths	These relationships are particularly important in the reporting of Exploration Results If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width notknown’).	The trench near Bongou was cut at right angles to the regional strike but it is not clear whether the width reported is a true width as there are no strike indicators in the rock and no rock outcrops in the vicinity. True widths are reported where they can be interpreted from the Kokumbo rock chip sampling.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	The location of the trench at Bongou is shown on an appropriate map. Coordinates of the Kokumbo rock chip samples are provided.
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reportingof Exploration Results.	Values reported from the trench were in a zone where all samples contained anomalous gold. Elsewhere no values exceed 0.35g/t Au and the majority of samples are below detection limit (0.01g/t Au)
Other Substantive Exploration Data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results;	Not relevant

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bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Further Work The nature and scale of planned Further trenching is planned near the reported trench, followed eventually by further work (eg tests for lateral drilling. extensions or large scale step out drilling. At Kokumbo, geological mapping and ground magnetic surveys are in progress. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

TENEMENT STATUS – DECEMBER QUARTER, 2013

Name	Number	Location	Area (sq. km)	PDI equity	Changes in holding during December Quarter, 2013
Fouli	arrêté 2011- 11- 351/MCE/SG/DGMGC	Burkina Faso	186.2	100%	None
Tantiabongou	arrêté 2007- 019/MCE/SG/DGMGC	Burkina Faso	93.9	100%	None
Sirba	arrêté 2011-11 - 353 /MCE/SG/DGMGC	Burkina Faso	136.9	100%	None
Madyabari	arrêté 2011- 11 - 352/MCE/SG/DGMGC	Burkina Faso	171.9	100%	None
Tyekanyebi	Arrêté 2010- 202/MCE/SG/DGMGC	Burkina Faso	242	100%	None
Tamfoagou	353 (arrêté 2005- 061/MCE/SG/DGMGC)	Burkina Faso	238	100%	None
Tangagari	arrêté 2009- 068/MCE/SG/DGMGC	Burkina Faso	127.5	Earning 95%; current equity 0% (until final cash payment is made)	None
Aoura	arrêté 2008- 023/MCE/SG/DGMGC	Burkina Faso	25	Earning 95%; current equity 0% (until final cash payment is made)	None
Boussouma	Arrete 2011- 059/MCE/SG/DGMGC	Burkina Faso	116	Earning 95%; current equity 0% (until final cash	None

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				payment is made)
Bangaba	Arrete 2009- 100/MCE/SG/DGMGC	Burkina Faso	128	Earning 95%; current equity 84%	None
Kogodou South	2011- 299/MCE/SG/DGMGC	Burkina Faso	44.6	Earning 100%; current equity 0% (until final cash payment is made)	None
Bira	2013- 33/MCE/SG/DGMGC	Burkina Faso	21	100%	None
Basieri	2013- 16/MCE/SG/DGMGC	Burkina Faso	73.5	100%	Application granted during the December Quarter
Kokumbo	Mining exploration permit No. 307	Cote D'Ivoire	400	Earning 90%	None
Ferkessedoug ou	Mining exploration permit No. 310	Cote D'Ivoire	387	100%	None
Cape Clear	EL 5423	Victoria, Australia	160	100%	None

Predictive Discovery Limited (PDI) was established in late 2007 and listed on the ASX in December 2010. The Company is focused on exploration for gold in West Africa. PDI has a distinctive technological capability, known as Predictore [TM] , which is designed to increase targeting efficiency thereby reducing ore discovery cost. The Company’s major focus is in Burkina Faso, West Africa where it has assembled a substantial regional ground position totalling 1,605km[2] and is exploring for large open-pittable gold deposits. Exploration in eastern Burkina Faso has yielded a large portfolio of exciting gold prospects, including the Bongou trend where a series of high grade gold drill intercepts have been obtained recently. PDI also has interests in a strategic portfolio of tenements in Cote D’Ivoire covering a total area of 1534 km[2] .

Competent Persons Statement

The exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Paul Roberts (Fellow of the Australian Institute of Geoscientists). Mr

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Roberts is a full time employee of the company and has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Roberts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further details please contact:

Paul Roberts

Nathan Ryan

Managing Director

NWR Communications

Tel: +61 8 9216 1020 Tel: +61 420 582 887 Email: Email: paul.roberts@predictivediscovery.com nathan.ryan@nwrcommunications.com.au

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